The Importance of Assessing Your Insurance Coverage

Major life changes—Life is constantly changing, often marked by milestones such as marriage, the birth of a child, a new home or a career change. These events can bring unique challenges and responsibilities, altering your financial landscape and potential insurance needs.  

Changing options—The insurance market is dynamic and policy options may evolve to meet changing needs and emerging risks. New policy options may offer improved features, better rates or additional benefits that can enhance overall financial security. Regular assessments can allow you to stay informed about these changes, ensuring that your coverage remains relevant and your rates stay competitive.  

Asset accumulation—As you accumulate assets and valuables over time, it’s crucial to reassess your insurance coverage. High-value items such as jewelry, art or collectibles may not be protected under a standard policy. Regular assessments may help identify gaps in coverage and obtain additional riders or policies to safeguard your growing wealth. 

Health and lifestyle changes—Health is a dynamic aspect of life, and as you age or experience changes in your well-being, your insurance needs may evolve. Regular assessments of health insurance policies can help you ensure that your coverage meets your current and anticipated medical needs. Lifestyle changes, such as adopting healthier habits or quitting smoking, may also lead to premium reductions. 

Risk and liability mitigation—Assessing your insurance policies can allow you to identify potential risks and liabilities that may have emerged or changed since your last review. This proactive approach may enable you to mitigate risks by adjusting coverage limits, adding liability protection or exploring umbrella policies.  

Cost-effective planning—Regular policy assessments can lead to savings. As your life circumstances change, you may find that you are overinsured in certain regards or that you qualify for discounts based on changing circumstances. By optimizing your coverage, you can allocate your financial resources more efficiently and avoid paying for coverage you no longer need.